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QUESTION

Assume that the stock of capital ( K ) increases by 6%. Holding all other factors constant, we know with certainty that which of the following will

Assume that the stock of capital ( K) increases by 6%. Holding all other factors constant, we know with certainty that which of the following will occur?

Select one:

a. the capital-labour ratio will decrease

b. output per capita will increase by 6%

c. output will increase by 6%

d. output will increase by less than 6%

e. None of the above.

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